Report Claims Bungie Preparing Layoffs as Destiny 3 Remains Outside Active Production

by Salal Awan

Bungie is reportedly preparing for another round of significant layoffs as the studio approaches the end of Destiny 2’s current development roadmap, according to a new report from Bloomberg’s Jason Schreier.

Citing sources familiar with the company’s plans, the report states that Bungie currently does not have a direct follow-up project lined up for the existing Destiny 2 development team once the game’s present content cycle concludes next month.

The report further claims that Destiny 3 is not currently in active production. While Bungie developers are reportedly pitching new projects internally, including ideas connected to the Destiny franchise, none of those proposals have allegedly received formal approval.

According to Bloomberg, Bungie’s operating costs remain relatively high compared to many studios due to its Bellevue, Washington location and the expense associated with retaining long-term technical staff in the Seattle area.

The report also states that Bungie has shifted additional focus and resources toward Marathon, the studio’s extraction shooter project released earlier this year. Although Marathon reportedly failed to meet sales expectations following its March launch, Bungie is said to believe the game can continue expanding its audience over time.

Sources cited in the report claim that some staff members previously working on Destiny content have already been reassigned to Marathon in recent months.

The latest report arrives during an ongoing period of restructuring across Sony Interactive Entertainment and the broader games industry, where publishers and platform holders have increasingly emphasized cost reductions, restructuring efforts, and live-service sustainability.

Founded in 1991, Bungie became one of the industry’s most recognizable shooter developers through franchises such as Halo and Destiny. Since launching in 2014, the Destiny series has grown into one of gaming’s largest live-service franchises, combining first-person shooter gameplay with MMO-style progression systems, cooperative raids, and seasonal content updates.

Sony acquired Bungie in 2022 as part of its broader push into live-service gaming.

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